Selling rental property - expense appliances?

[indelible]

Hello, I had a rental property that I sold on 6/30/14; the tenant moved out on 12/31/13. During that 6 month period I cleaned up the house and got a new stove, refrigerator, and microwave at the suggestion of the RE agent, to make the house more desirable to buyers.

Can I expense the new appliances or do I have to depreciate them? I bought them in April 2014.

Thanks!

 

[FlyingRon]

Well, if you were going to consider it an improvement to the rental, you'd have to depreciate, but since you sold that you could accelerate it.

However, since you really bought this for the purpose of selling the property, you'd just add it to the basis and thus decrease the potential capital gain.

 

[davew128]

Well, if you were going to consider it an improvement to the rental, you'd have to depreciate, but since you sold that you could accelerate it.

However, since you really bought this for the purpose of selling the property, you'd just add it to the basis and thus decrease the potential capital gain.

I would direct you to the recently enacted repair regulations. Most people I know wouldn't even hesitate to expense this stuff.

 

[LdiJ]

I would direct you to the recently enacted repair regulations. Most people I know wouldn't even hesitate to expense this stuff.

The house wasn't available for rent at all in 2014, I can't see any other way to handle it but to add the cost to basis.

 

[indelible]

ok, thanks. I will increase the basis.

If the tenant didn't move out until some time in January 2014, would I still increase the basis even though they weren't renting the place when the appliances were installed?

 

[LdiJ]

ok, thanks. I will increase the basis.

If the tenant didn't move out until some time in January 2014, would I still increase the basis since they weren't renting the place when the appliances were installed?

In my opinion, yes.